Report on Risk Management in China

Running head: RISK MANAGEMENT
Risk management
Name of student
Name of University
Author note

1
RISK MANAGEMENT
Table of Contents
Introduction......................................................................................................................................3
Identification and risk analysis considering the financial, legal, environmental and HR issues.....3
Plan for measuring and monitoring the performance......................................................................5
Processes used for analysing the strategic issues............................................................................6
Research principles and methods applicable...................................................................................8
Personal autonomy...........................................................................................................................9
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

2
RISK MANAGEMENT
Introduction
The report is presented to discuss the major risks that are associated with the huge
catastrophic explosion that occurred at Tianjin port in China in the year 2015. As the topic
focuses on the ways of managing risks, so the principles of risk management are considered here
as effective for controlling the risks and mitigate those too with ease and effectiveness. The risks
will be assessed here along with the mitigation plan with the inclusion of a cost benefit analysis
for controlling the risks with ease and effectiveness. The topic will also discuss the risk analysis
techniques and a suitable plan for monitoring the performances of business after the explosion
occurred (Meyer & Reniers, 2016). Various processes are used to analyse the strategic issues,
and suitable research methods such as risk assessment procedure shall be applied as a decision
making tool. Lastly, the personal reflection will be presented too to discuss the outcomes that
have been achieved with the help of risk management.
Identification and risk analysis considering the financial, legal, environmental and HR
issues
The explosions caused financial, HR, legal and environmental issues that created an
impact on the engineering activities at the port by stopping those and even harmed the safety and
efficiency of the environmental management systems (Park et al., 2013).
Financial
Due to the explosion caused at the Tianjin port, nearly 200 people faced severe death, and
many were left injured. The explosion was so devastating that it destroyed many buildings,
infrastructures, organisations that were present there and even the cars parked in that area. The

3
RISK MANAGEMENT
dormitories were also destroyed that not only made many shop owners face loss but also created
shockwaves that were felt like earthquakes in the nearby areas. There was loss of property worth
nearly $2.5 to $3.5 billion (Glendon, Clarke & McKenna, 2016).
Environmental
It is certain that explosions like this can affect the environment negatively too. The port
area stored numerous storage containers holding chemicals and hazardous substances that
exploded and caused harmful gases to spread everywhere. As soon as the fire spread, fire fighters
put water which got mixed with the chemicals like calcium carbide and released poisonous gases
like acetylene, carbon monoxide and other harmful pollutants that damaged the ecological
balance in nature. The nearby plants, trees were the subject of destruction due to the fire and the
flames, gases further degraded the environmental condition and polluted everywhere (Aven,
2012). This made it difficult for people to breathe fresh air and even toxic gases deteriorated the
environment conditions.
Human resources
Human resources mean the employees who used to work in the port area and this can
help in enhancing the productivity level and make the organizations gain good profit in business.
Not only the explosion took the lives of many people, but also created difficulties for the workers
to perform to their potential. There were state officials too who were there to discuss the safety
standards and the explosion resulted in their deaths as well. The warehouse at Tianjin Dongjiang
Port Ruihai International Logistics was one of the major companies present there and many of
the workers there also died. The firefighters who came to the rescue, few of them also found
dead afterwards (Colicchia & Strozzi, 2012).